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Positive returns for 10 consecutive years! A pullback may be a good opportunity to invest!

2024-08-15

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The stock market was volatile in August, and the bond market was also not peaceful.

As a large amount of funds poured into the bond market, it pushed the bond market up, but at the same time it also caused market concerns about bond market risks. The central bank has recently stepped in to speak out and guide the bond market many times, including carrying out treasury bond borrowing operations and reverse repurchase of medium- and long-term bonds.

After the bond market adjustment, the interest rates of 10-year and 30-year treasury bonds have actually gradually approached the reasonable range of long-term treasury bond yields. However, behind the correction, investors holding bond funds may have doubts: Will the bond market continue to "roller coaster"? Should they redeem their bond funds?

Investment still depends on the general direction. The weak recovery trend of the macro economy has not changed, and the loose monetary policy has not changed. In this low-interest market, bond funds can still be said to be products worth paying attention to in asset allocation. Moreover, a major feature of bond funds is that they usually have stable coupon income, so there is no need to worry too much about short-term adjustments.

Bond market correction may be a good opportunity to invest

Pure bond funds are funds that invest exclusively in bonds, with the characteristics of low risk and low volatility. Although there has been a significant pullback recently, as an important part of asset allocation,Using the "stock-bond seesaw" effect to hedge against stock market risk fluctuations, the core of pure bond funds to help investors pursue "long-term winning" investments remains unchanged